WASHINGTON (11/23/15)--Human trafficking, money laundering, trade-based money laundering and terrorist financing all come with their own sets of red flags for financial institutions. In addition, entities such as money services businesses and cash-intensive businesses can be legitimate, but also have potential to be used for illicit activities.
At the CUNA/National Association of State Credit Union Supervisors Bank Secrecy Act (BSA) Conference last week, more than 300 attendees heard from a number of experts, regulators and speakers on nearly every aspect of BSA compliance. Among the most useful items are the various red flags that come with illicit activity that law enforcement is looking for.
According to the experts and the Federal Financial Institutions Examination Council BSA Manual, money laundering and terrorism red flags include: